I don’t get if those patterns are real and what stop, entry and targets mean. Is it a reliable source? I give you an example: https://www.ig.com/en/trading-strategies/10-chart-patterns-every-trader-needs-to-know-190514
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Trading patterns or technical “analysis” is extremely unreliable. It’s saying that “in the past, we saw this pattern based on the stock’s price and volume, and we expect this pattern to occur again.” If it were this easy then everyone would be rich. In reality, stock prices are extremely unpredictable, especially for micro-cap stocks that are traded within minutes or seconds (which is the realm of most technical “traders”).
On the flip side, if we broaden our definition of “trading patterns”, people profit from it everyday. The difference is these people graduated top of their class with a pHD in Mathematics from the top schools in the world and work at quantitative trading firms like Jane Street. The patterns they capitalize on are much more complex than ones like the head and shoulders pattern in the article (if you can call that a pattern). They take into account every single variable, run complicated arbitrage strategies, and complex statistics.
So in short – trading patterns can work but likely not the ones like in the article.
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